Commercial Insurance

Liability Insurance

Liability insurance usually covers the cost of compensation to a third-party for personal injury and illness and loss of, or damage to, property.

There are three main Liability Insurance types:

Employers’ Liability Insurance
Employers’ Liability Insurance covers your legal liability as an employer for injury, disease or death sustained by your staff arising in the course of their employment. 

This insurance is legally compulsory for all businesses that have any employees (unless they are exempt under the Employers’ Liability Compulsory Insurance Act 1969). By law, Employers’ Liability cover is required for at least £5 million. In practice, however, most policies provide a limit of £10 million.

Your insurer will issue you with an Employers’ Liability Certificate each year as evidence of insurance. You are legally required to display this or have it available in electronic form to which employees have reasonable access.

Public Liability
Public Liability Insurance covers the legal liability of your business to pay compensation to members of the public for death, injury or damage to their property, which arise in the course of your business. It also covers legal fees, costs and expenses such as representation at any coroner’s request, fatal accident enquiry or other court hearing because of an accident. Whilst it is not legally compulsory, it is essential insurance for any business – large or small.

Products Liability
Many customers will not hesitate to pursue a claim against you if they are injured or become ill as a result of what they believe to be faulty or defective goods they bought from you. You could be held legally liable in these circumstances even if you have not been negligent. 

Products Liability Insurance covers the legal liability of your business for injury or damage arising from defects in the design or manufacture of goods made, repaired, sold or supplied by you in the course of your business, up to a maximum amount (limit of indemnity) each year.

We can advise on the level of Liability Insurance cover you need to have in place to ensure your business is fully protected.